Is this a pipe dream? Getting cheap no-fault auto insurance is like finding the proverbial needle in a haystack. You know itâ€™s there somewhere, but how in the world are you going to find it?

Well, thank goodness for the Internet. Because on the web you can find anything you want (and a lot of things you donâ€™t want). You just need to know how to look.

To find anything, you have to first really know what youâ€™re looking for. And if youâ€™re clear about no-fault auto insurance (NFAI), youâ€™re one in a million. But, if youâ€™re not, youâ€™ll want to do some homework, because itâ€™s incredibly confusing.

Some states donâ€™t offer NFAI. Each individual state has their own regulations for auto insurance companies and policies. Some require NFAI, while others donâ€™t. And some offer something similar instead called â€œtortâ€ coverage. So, the first step is to get clear how it works in your state.

You can google â€œyour stateâ€™s auto insurance regulationsâ€ on the Internet and look for the types and amounts of coverage minimally required. But be prepared that some state requirements are very low and others donâ€™t even require basic liability and/or bodily injury protection.

Once you know the minimum coverage required, you then have to decide how much coverage you want and need for your particular circumstances. The insurance salesmanâ€™s usual advice is to buy high â€“ as much as you can afford. But, since heâ€™s earning a commission on the sale, thatâ€™s what you should expect him to say.

Of course erring on the side of caution is still your best bet, especially if you own your own home or other valuable assets. In case of an accident, you donâ€™t want your personal finances on the hook.

When you know how much car insurance you need and want, then itâ€™s time to shop around. And thatâ€™s pretty easy to do on the net. If youâ€™ve never compared rates before, youâ€™re going to be shocked at how much difference there is between different companies - hundreds of dollars in some cases.

There are also a lot of ways to save money on no-fault auto insurance. Check into possible discounts for a good credit report, multifamily and multipolicy discounts, driver safety classes, installation of safety/anti-theft devices, etc.

One of the easiest ways to cut car insurance costs is to increase your deductible. For example, raising your deductible from $250 to $500 can lower your annual premium by as much as 10%. Just be sure you always have enough cash available to cover the higher deductible if you should ever need to.

One last point to consider. Cheap isnâ€™t necessarily whatâ€™s best for you. You can get cheaper rates by skimping on your coverage or even possibly dealing with a shady, fly by night insurance company. Michigan state regulators recently caught several scam artists selling bogus no-fault auto insurance policies.

So always be certain youâ€™re dealing with a legitimate reputable insurance company, especially if theyâ€™re promising outrageously cheap rates. You could end up getting nothing for your money and it would not be considered â€œno-faultâ€ of your own.

About The Author
Maria Cuttini shares tips and resources for saving money on auto insurance on her blog at http://www.AutoInsuranceUnlimited.com. Stop by and save some money!

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